Vitro, S.A. de C.V., the Mexican glass producers, announced unaudited financial results for the fourth quarter and year-ended 31 December 2000.
Sales during fourth quarter of 2000 reached US$ 734 mil…
Vitro, S.A. de C.V., the Mexican glass producers, announced unaudited financial results for the fourth quarter and year-ended 31 December 2000. Sales during fourth quarter of 2000 reached US$ 734 million, an increase of 5.6% in dollar terms compared with US$ 696 million for the fourth quarter of 1999, but registered a decrease of 1.7% in peso terms with the comparable quarter in 1999. Exports during the fourth quarter of 2000 reached US$180 million, a decrease of 5.1% in dollar terms, compared with US$190 million of the fourth quarter of 1999. Earnings before interest and taxes (EBIT) during fourth quarter of 2000, reached US$ 80 million, a decrease of 18.5% compared with the US$ 98 million registered in the same period of 1999 as a result of price increases in natural gas, the impact of a strong peso on the exports sales margins, as well as the business units most exposed to the dollar, increases in the cost of certain packaging materials, and of additional SG&A from the integration of administrative structure of Harding Glass. Lower EBIT and higher non-recurring expenses, resulted in net income for the quarter of Ps 53 million, or US$ 6 million. Net income for fourth quarter of 1999 was of Ps 313 million or US$ 31 million. For the year, the Company posted consolidated EBIT of Ps 3,394 million and EBITDA of Ps 5,477 million, representing a year-over-year 19.2% and 13.3% decline, respectively. In U.S. dollars, consolidated EBIT and EBITDA for fiscal 2000 were US$ 345 million and US$ 558 million, respectively, a decline of 11.5% and 4.8% when compared with the previous year. External factors such as the year-over-year increase in energy costs and the strengthening of the peso during 2000 contributed to the decline in operating and EBITDA margins. Sales increases during the quarter were driven by the Company“s three core businesses. In Flat Glass the improvement in sales was the result of additional sales at Harding Glass (around 30% of the company“s year-over-year increase in US$) and strong volumes, especially in the construction segment. Acros Whirlpool enjoyed market share expansion as a result of an improvement in sales in terms of volume, which outpaced that of the entire sector, and in Glassware, sales improved mostly in the domestic market. As for the rest of the non core businesses, results at the Glass Container unit were impacted by the decline in demand in the wine and food segments resulting from non-recurring events when comparing sales year over year, and the vertical integration of one of the beer segment customers. For the fourth quarter of 2000, EBIT decreased by Ps 252 million or 24.7% in peso terms and 18.5% in US$. This change was the result of an increase in the cost of natural gas (year-over-year increase of around 91%) and of certain packaging materials, continued price competition, especially from low priced imports as a result of a strong peso and the same impact on export sales (in 2000 the average FX rate appreciated by 0.9% compared with YoY inflation of 9.0%). Close to 70% of Vitro“s sales are directly or indirectly linked to the dollar, with the Flat Glass and Diverse Industry businesses having the largest exposure.